RAINBOW Tourism Group (RTG) chairperson Joseph Kanyekanye has launched a witch-hunt following a tender scam that has sucked in senior officials at the hotel group.
Report by Taurai Mangudhla
Sources say the investigation unearthed tender irregularities mainly in the finance department where company officials took advantage of the ongoing multi-million dollar refurbishment exercise to line their pockets.
Junior staff in the respective departments were also affected. The extent of the exposure could however not be ascertained at the time of going to print.
Recently, the RTG chair said some staff members were re-assigned while finance director Paschal Changunda, human resources manager Cinderella Masimbe and commercial director Godfrey Pasipanodya had submitted their resignations after the enquiry was launched.
“We discovered internal control weaknesses particularly in procurement, which resulted in ‘separations’ of the group and those involved,” Kanyekanye said at the company’s EGM held on December 27 last year. He added the group had re-introduced internal tender processes to plug holes and support profitability in line with the group’s plans to return to profitability in the current financial year.
Efforts to get a comment from Kanyekanye were fruitless as he was said to be on holiday.
Changunda was RTG acting CEO for more than six months after former CEO Chipo Mutasa left the group in March last year to pursue other opportunities.
The hotel group in November appointed former African Sun MD Tendai Madziwanyika as CEO.
At the recent EGM, RTG shareholders unanimously approved the group’s US$4,5 million rights issue, which will see the group floating 225 million shares at a price of US$0,02 per share at a ratio of 13,6737 shares for every 100 ordinary shares held.
Kanyekanye said the rights issue funds would be used to fully retire the remainder of short-term borrowings from a US$10 million National Social Security Authority medium-term loan. As at June 30, 2012, the company’s short-term borrowings stood at US$12,6 million.
The common perception is that corruption exists in Government & Parastatals only. The private sector is terrible for corruption as well. It’s good some auditor or whistle blower spoke out in this case. Nyika yedu takaparadza ne corruption
The irony in this article is that JK has launched an investigation into corruption tendencies. There is a bigger institution which he heads as CEO which is much worse.
You just said what i also wanted to say. this guy is not serious sure or else he must do the same in his group coz its a shame really.
@ Kukanya & TT, here is some advise. (A) If you do know about corruption going on in an organisation there is nothing wrong with exposing corruption. (B) Whistle Blowing is a virtue as long as you have the hard evidence and it is safe for you to do so. (C) Some of us used to condone corruption and said “Aaah musiye adye mukana wake” – that way of dealing with corruption is destructive and ineffective.
ICAZ must disclipline its delinquent members, the number of CA (Z) holders being implicated in graft is shocking.
Great remarkable issues here. I¡¦m very glad to look your post. Thank you so much and i’m having a look forward to touch you. Will you kindly drop me a mail?
buy wow gold http://www.wow-gold-team.com